Global Recession is Near, Says Economists

BUSINESS

The world economy is on the verge of a recession, according to 257 economists surveyed by Reuters on October 25, 2022, but 70% of respondents think the likelihood of a dramatic rise in unemployment is extremely low. Most of the economists surveyed think that a recession is imminent for the world economy. 

The state of the world economy and the fallout from the COVID-19 pandemic reaction both appear dire. Globally, every nation has seen an increase in inflation, and the Russia-Ukraine conflict and rising energy prices have made matters even worse.

Everyone is talking about the possibility of a worldwide recession, according to Every, a global strategist at Rabobank. When people consider the global pattern in all the major economies, Michael said, it should be obvious that if unemployment persists at high levels, central banks will be able to hike interest rates.

Michael Every continued by saying that as long as the unemployment rate is high, central banks will believe they can keep raising interest rates.

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The data from the survey that began on September 26th, 2022 and went through October 25th, 2022, reveals a worsened outlook compared to the numbers recorded in July 2022. Economists concluded that the possibilities of a rise in unemployment were quite low.